Plan 5 Student Loan: 2025-26 & 2026-27
HMRC income-contingent repayments · 9% above £25,000 (2026-27)
Quick answer
£1,350/year on £40,000 (2026-27)
Threshold: £25,000 (2025-26) → £25,000 (2026-27) · Rate: 9%
Who this plan is for
English students who started undergraduate, PGCE, or Advanced Learner Loans on or after 1 August 2023.
- Started an undergraduate course in England on or after 1 August 2023
- Started a PGCE teacher-training course in England from August 2023
- New Advanced Learner Loans (Level 3-6 FE in England) from August 2023
Plan 5 repayments by salary
All figures computed live from HMRC-published thresholds. 9% of income above £25,000 (2026-27).
| Gross salary | 2025-26 annual | 2026-27 annual | 2026-27 monthly |
|---|---|---|---|
| £25,000 | £0 | £0 | £0 |
| £30,000 | £450 | £450 | £38 |
| £40,000 | £1,350 | £1,350 | £113 |
| £50,000 | £2,250 | £2,250 | £188 |
| £75,000 | £4,500 | £4,500 | £375 |
| £100,000 | £6,750 | £6,750 | £563 |
Interest rate
Plan 5 interest is capped at RPI only (no RPI + 3% premium), making the lifetime cost significantly lower than Plan 2 for most borrowers.
Current rates change each September (RPI reset). See the GOV.UK student loan repayment thresholds and interest rates page for the latest.
Writeoff
Plan 5 loans are written off 40 years after the April you were first due to repay — the longest writeoff window of any UK student loan plan.
Use the full calculator
Want to combine Plan 5 with another plan, test different salaries, or model a pay rise? Open the full UK Student Loan Repayment Calculator — supports all plans simultaneously and toggles between tax years.
Other student loan plans
Frequently asked questions
What is the Plan 5 threshold for 2026-27?
£25,000 per year (£2,083/month, £481/week). You only repay 9% on the portion of your gross income that exceeds this figure. The 2025-26 threshold was £25,000, and HMRC applies the new threshold from 6 April 2026.
How much do I pay on a £40,000 salary under Plan 5?
At £40,000 for 2026-27, you repay £1,350 per year (£113 per month). The calculation is 9% × (£40,000 − £25,000 threshold) = £1,350. Repayments stop automatically if your income drops below the threshold.
Who qualifies for the Plan 5?
English students who started undergraduate, PGCE, or Advanced Learner Loans on or after 1 August 2023.
I started university in September 2023. Which plan?
Plan 5 — England's 2023 reforms moved all new English undergraduate starters onto Plan 5 from 1 August 2023. The lower £25,000 threshold means you start repaying earlier, but the capped-at-RPI interest and 40-year term are deliberately less front-loaded than Plan 2.
Why is Plan 5's threshold lower than Plan 2?
Plan 5 is designed so more borrowers repay a larger share of their balance. The £25,000 threshold + 40-year term means the government expects most graduates to eventually clear their loan — contrast with Plan 2 (higher threshold, 30-year term) where most balances are written off. You pay longer but pay less total interest.
Does the £25,000 Plan 5 threshold ever go up?
The Department for Education has frozen the Plan 5 threshold at £25,000 until at least April 2027 — it does not uprate annually like Plan 1/2/4. Check the current year before planning long-term repayments, as HMRC occasionally announces early releases.
Can I be on Plan 2 and Plan 5 at the same time?
Yes, if you completed an undergraduate course pre-August 2023 (Plan 2) and started a second course after August 2023 (Plan 5). HMRC collects a single 9% deduction and applies it to Plan 2 first, because Plan 2 has the higher threshold — you stop repaying Plan 5 once Plan 2 kicks in unless you are above both thresholds.
When is my Plan 5 written off?
Plan 5 loans are written off 40 years after the April you were first due to repay — the longest writeoff window of any UK student loan plan.